Can conservation help my business?

Green practices will vary from one business to another depending on their operations. The economic benefits of sustainability by far outweigh the disadvantages that businesses may encounter. Sustainable practices will include wise use of shared resources conservation like Energy, paper, and water. Responsible purchasing, recycling, or reduction of waste at source.

Cost Reduction

A study by the Carbon Trust found that businesses can save up to 6% of their annual turnover by implementing sustainability initiatives. (Source: Carbon Trust). The aim of every business is to reduce costs and maximize benefits. Having technologies that are less wasteful, and energy-efficient. Green buildings will reduce the need for lighting, and appropriate ventilation to reduce the need for heating or cooling.  Conserving water will reduce the water bills while insisting on printing only when necessary will ensure less cost on paper. Making conservation a corporate culture will ensure that staff is aware of the need to conserve.  Although some green initiatives have huge capital requirements, their continued use saves the company money in the long run.

Increased revenue

A survey by the MIT Sloan Management Review found that companies with sustainability strategies outperformed their industry peers in terms of revenue growth and shareholder value. (Source: MIT Sloan Management Review)

Brand image

Increased awareness in conserving the Public image of your brand will create loyal customers. Terms like green brand image, green brand attachment, and green brand trust, green advertising have been coiled. The brand suffers tremendously if your company is exposed to polluting water or releasing toxic waste to the environment. The hospitality industry is particularly sensitive to brand image. Conservation initiatives in packaging can help promote your brand.

A study by Cone Communications found that 87% of consumers will purchase a product because a company advocates for an issue they care about, while 76% will refuse to purchase a product if they discover the company supported an issue contrary to their beliefs. (Source: Cone Communications)

Customer and Employee Retention

There are customers who are willing to pay more for products that are sustainably sourced or manufactured and are more likely to avoid brands that impact the environment negatively.

Employee engagement:

A report by the United Nations Global Compact and Accenture found that sustainability can increase employee engagement and retention rates. (Source: United Nations Global Compact)

Lower environmental impact.

Lowering the impact will ensure the company is reducing its footprint on the environment and will be good for business. This will ensure good relationships with neighbours as good corporate citizens.

Access to Capital

A study by Harvard Business School found that companies with strong sustainability performance are more likely to have access to capital at a lower cost. (Source: Harvard Business School)

Green bonds have been created to fund projects with positive and/or climate-smart.  Two companies in Kenya Helios and Acorn Holdings issued the first green bonds in Kenya with the aim of funding climate-friendly projects. Over 10 stock exchanges have introduced environmental listing.

Shareholder value

Shareholder value refers to the financial benefits that a company’s owners, or shareholders, receive from their investment in the business. A company’s ability to create and sustain shareholder value is a key measure of its success. By implementing sustainability initiatives, companies can improve their long-term financial performance, which can lead to increased shareholder value. For example, reducing energy consumption and waste can result in cost savings and increased profitability, while improving brand reputation can lead to increased customer loyalty and revenue growth. By considering the impact of their operations on the environment and society, companies can create long-term value for shareholders, while also contributing to a more sustainable future.

Adherence to legislation

High level of legal and regulatory compliance that will ensure your business is not receiving compliance orders, and closures hence disrupting operations.

Adherence to legislation is a critical component of running a successful business. By complying with legal and regulatory requirements, companies can avoid costly fines, penalties, and legal disputes that can disrupt operations and damage their reputation. Furthermore, a high level of legal compliance can demonstrate to customers and investors that the company is ethical, trustworthy, and committed to upholding its responsibilities to society and the environment.

In order to achieve this, businesses must stay up-to-date with the latest legislation and regulations in their industry, and invest in training and resources to ensure that employees are aware of and adhere to legal requirements. By prioritizing compliance, businesses can not only avoid legal and financial risks but also build a strong reputation as a responsible and ethical organization.

Risk Reduction

Deliberately building systems for sustainable business helps organizations to identify early threats and warnings. There are several risks that are associated with the environment, and these may include reputational risks, increased insurance costs, operational risks leading to a decrease in asset values, and an increase in expenses and liabilities. Other risks include litigation and poor relationship with host communities emanating from impacts of the business e.g. Public health impacts.

Environment Impacts

Opting for dispensers in place of water bottles, replacing plastic cutlery with more durable ones and recycling are among the simple steps a company can take. On a larger scale, bottles and opting global environmental impacts are increasing and companies will need to decrease their footprint on the environment.  Carbon reduction targets have been set at 20% for corporates.

Healthy work environment

Employee motivation is a key factor in any organization. Employee attraction and retention are improved through a great working environment. A healthy environment boosts productivity and efficiency. Employee turnover and absenteeism are also reduced. There are fewer medical claims when the work environment is healthy.

Conclusion

Going green is part of the environmental strategy in the organization which should be incorporated by the board of management at the highest level. The company should carry out the impact of its business on the environment from cradle to grave and identify priority areas. Sustainability is no longer a reserve of a few activists but everyone’s responsibility.